** MIDDAY WRAP **
October 26th, 2006Banks: Santander up nearly 1% post slightly better than expected numbers. Elsewhere the sector was again quiet.
Insurance: Aviva hit hard despite a broadly in-line set of new business figures – expectations had run up into the numbers. Elsewhere it’s very
quiet again.
Retail: PPR down 2% with broker earnings downgrade weighing on the stock on top of weakness attributed to its earnings miss. Cadbury down
small after the firm cut guidance for FY revenue growth and margins – the negative news looks already to have been priced in prior to reporting.
Consumer: Vedior off 6% on disappointment over the net income line and on sales growth in France and the Netherlands. Pernod down 2% on
light numbers and despite reaffirming guidance. Carnival flat ahead of Royal Caribbean numbers tomorrow. Carrefour rallies despite French food retail market share data showing flat share month-on-month.
Pharma/Chems: AzstraZeneca down more than 4% after its stroke drug NXY-059 failed a clinical trial. The firm is due to report numbers at 11am UK time. GlaxoSmithKline off small into numbers at 12pm UK time. DSM off 2.5% and Ciba up small on numbers. Rhodia up 3.5% after selling its silicones business to China National Bluestar.
Oils: Utils: Royal Dutch Shell up on very strong numbers with the beat coming from the downstream business. Evidence of switching into the name and out of BP.
Tech: Business Objects up over 5% on solid numbers seen last night. The firm also raised FY guidance both at the headline and underlying level.
Dassault Systemes down 2% on a disappointing mix in its Q3 numbers. Nokia is a strong performer, up 2% on the session. Capgemini down 1% after pre-announcing and on news it plans to acquire India’s Kanbay for $1.25bn.
Cap Goods: Renault off its top and in the red after posting a solid set of numbers after the close last night. DaimlerChrysler holds onto yesterday’s gains, trading broadly flat over the morning. Continental hit down 2% on speculation the firm could warn and despite the firm denying the story.
ThyssenKrupp up sharply on speculation Nucor Steel could bid for the firm.
Telcos/Media: The sector leads the market this morning with the index hitting its highest level since February 2002. France Telecom leads the charge, up nearly 4% after posting better than expected revenues and EBITDA, and reiterating its FCF guidance of €7bn for 2006. Telenor up 7%
on very strong numbers and upgraded guidance. In the media space, WPP continues its run into tomorrow’s numbers. Antena3 bounces off early lows on slightly light numbers and a lacklustre outlook.